We have compiled all the crucial information on KfW subsidies. Find out which subsidy products are available and where the stumbling blocks lie. You can also optimize your real estate financing in a targeted manner.
- You choose the type of financing – whether for new construction, real estate purchase, debt restructuring or forward loan – and provide information on the costs incurred and, if applicable, equity capital / personal contributions.
- Then enter the key data of your income, revenue and expenditure situation.
- On the basis of your information, we calculate the financing feasibility of your project and draw up your personal comparison – free of charge and without obligation
With promotion programs cash money save
Whether builder or property buyer – every prospective homeowner should check whether subsidies are available before purchasing a property. Their integration can be really worthwhile, since often a substantial reduction of the costs lures.
How high the possible saving turns out, depends on which promotion measures are accessible.
The buyer takes a subsidized loan at a reduced interest rate of 50.000, with an interest rate advantage of 0.3 percent over the regular mortgage loan. He renovates the property and installs a heat pump, which is subsidized directly.
Depending on the respective constellation, considerably greater savings are possible. An individual review quickly provides clarity.
Types of KfW funding at a glance
There is not a special promotion, not the special promotion house purchase. Instead, KfW Bank offers a number of different subsidy programs. In essence, a distinction is made between two funding products.
- Subsidized loans: These loans have a reduced interest rate, which saves the borrower money compared to taking out a regular bank loan. He must repay the subsidized loan, but he experiences a financial relief due to the lower interest rate. In addition, depending on the bank, it can also improve the lending of the other loan.
- Grants: KfW Bank pays out a subsidy amount that does not have to be repaid. Buyers and renovators are thus not only relieved financially over time, but immediately.
It is not possible to make a general statement about which type of subsidy is better. Grants may be attractive, but depending on the term and loan amount, the subsidized loans can also offer substantial savings. If several subsidies are available, it may be advisable to combine them with each other.
The range of measures that are supported by KfW is large. Here is a brief overview of the main subsidy programs for private builders, buyers and renovators.
Home ownership program: low-interest loan to finance a home of your own. The funding requirements are easy to meet, which is why the program is very often used.
Energy-efficient construction: The former program “okologisch Bauen” have been replaced by this funding program. The development bank provides a subsidized loan, provided the new building meets the requirements for the new KfW Efficiency House (with low primary energy demand). Up to 100.000 euros financed at a low annual interest rate.
Energy-efficient refurbishment: Investment subsidy for private owners who make housing more energy efficient by z.B. Retrofit pellet heating systems or heat pumps.
Watch out – the biggest pitfalls with KfW development loans
As soon as it is a question of promoting the purchase of a house and financing the construction, numerous pitfalls arise. The reasons why there are repeated disappointments couldn’t be more different. Some builders inform themselves badly, some are wrongly advised and others make own mistakes. The following is an overview of the major pitfalls.
Failing to take advantage of opportunities: Builders and renovators in particular occasionally fall short of their options. Thus it can e.g.B. occur that they only use one grant program when they could combine several.
Submitting an application too late: When it comes to deadlines, KfW Bank is not amused. Unfortunately, it is often the case that applications for funding must be submitted before measures can be started. If you submit your application too late, you lose your entitlement to funding.
Cost comparison forgotten: Subsidized loans can offer a whopping savings. However, this does not necessarily have to be the case. Particularly with the homeownership program, it is important to carefully consider whether it is worthwhile to include it at all. Under certain circumstances a regular mortgage loan is more favorable.
Consider repayment-free start-up period: Some KfW subsidized loans provide for a repayment-free start-up period. During this period, only interest can be paid, but no repayment. This will stretch out the repayment, which will also affect the cost of financing.
Different fixed interest rates: When it comes to fixed interest rates, KfW Bank usually does not leave much freedom of choice. With many programs, only five or ten years to choose from. For example, someone who takes out their principal loan with a 15-year fixed rate necessarily services multiple loans with different fixed rate periods. If debt is rescheduled at a later date, this could be an obstacle.
Calculate your personal subsidy
The first step is to determine which specific funding programs are accessible at all. Subsequently, the specific conditions for the KfW loan or, if applicable. also obtained a grant.
Because this data differs depending on the project, we have decided not to provide our own KfW calculator. It is too easy for errors to creep into the calculation, with possible serious consequences.
House purchase – state support
In summary, it can be said that the state subsidy can play a decisive role for many builders when buying a house or other real estate. Often it is smaller sums that are missing to give the loan application the right direction. From our many years of experience, we always recommend that the state subsidies be checked when buying a house.
Unsettled? Let the professional help you
Few prospective borrowers can say with certainty what subsidy programs are available to them under the KfW subsidy for home purchases. No wonder, after all, it is a complex issue that requires experience. Who would like to learn more about your personal funding options, should not speculate. It is better to get advice from the financing and funding expert.
Our consultants look back on years of experience in the field of real estate financing. They have helped numerous builders, buyers and renovators to finance their projects. For each financing request, the possibility of including subsidies as KfW construction financing is examined. Especially since it does not have to remain with the KfW loan, under certain circumstances supplementary state subsidies are available.
You too can benefit from this experience. The consultation is free of charge and without obligation. You take no risk and can always decide for yourself whether and where you finance. Our experts check your financing, work out a tailor-made concept and – if it is worthwhile – also suggest specific subsidies. Take this opportunity and submit your request now.